Levels to watch: FTSE, DAX and S&P 500

Small gains this morning do little to reverse the fundamentally bearish outlook, with any strength still likely to be met by new selling.

Data board
Source: Bloomberg

FTSE 100 continues downtrend
It looks like the modest attempt at a rally overnight is petering out, with the strong downtrend still firmly in place for the index. A move below 6100 takes us on towards 6000 itself and then down towards 5900.

For the time being, it looks like any renewed bounce will find resistance around 6200. The approach here remains to sell into strength as it appears. 

FTSE daily chart

DAX maintains bearish outlook
A similar picture prevails for the index here, although with the market still broadly oversold intraday downside may be limited. The 9800 area also intervenes as a possible area where buyers may attempt to muster a rally.

It would likely take a move back above 10,000 to reverse the ongoing bearish picture, with a move below 9775 taking us on to 9523. 

DAX daily chart

S&P 500 risks fresh selling
If the index fails to push on above 2065/2070 then it will leave itself vulnerable to fresh selling, with an initial target around yesterday’s lows of 2045 a first target, and then on towards 2010.

The ‘golden cross’ seen in late April continues to fail dismally, but so long as the 50-day holds above the 200-day we would expect a fresh rally to materialise soon. It will, however, need a move above 2080 to confirm that the bulls are back in charge. 

S&p 500 daily chart

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